WASHINGTON—Democrats and Republicans are far apart in their proposals for the next COVID-19 relief plan, and funding for states and localities remains one of the biggest differences, as in previous talks. While Democrats want to bail out states, tax revenue data shows that states have actually fared better than expected, raising the question of whether a large federal stimulus is really needed.
In his first week in office, President Joe Biden announced a $1.9 trillion rescue plan to combat the economic downturn and the pandemic. The new administration’s plan includes $350 billion in emergency funding for state and local governments to help them meet budget shortfalls.
